DALLAS (AP) A biodiesel-fuel producer says it will continue operating, despite a bankruptcy filing by a group of investors who claim the company hasn't been paying its debts on time.

Five investment groups have filed an involuntary Chapter Seven bankruptcy petition against Dallas-based Earth Biofuels.

The investment group says it collectively holds at least 33 (m) million dollars of the company's senior convertible notes, issued last summer.

Earth Biofuels produces, distributes and markets biodiesel fuel, which is made for vehicles from natural seed and animal oils and liquefied natural gas.

In its annual report filed with the Securities and Exchange Commission on May 18th, the company listed more than 60 (m) million dollars in losses for 2006.

In a statement yesterday, the company called the creditors' action unnecessary and said it will continue producing.

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